The chart presents an analysis of crude oil price movement using Elliott Waves on a 4-hour time frame.

The price reached a peak at $79.385 (wave iii), followed by a corrective phase within wave (iv) targeting the 38.2% Fibonacci retracement level.

This ongoing correction represents a natural market pause before the anticipated continuation of the upward trend in wave (v).

This analysis highlights how Elliott Waves can be utilized to forecast market movements and assess trends based on price corrections and impulses.

The current scenario suggests a potential new price rally once the correction completes, offering investors an opportunity to monitor support levels and re-enter the bullish trend.

Crude Oil News

Crude oil and gasoline prices fell to 1-week lows on Tuesday, with crude dropping by -2.56% and gasoline by -1.32%. Prices declined after President Trump announced plans to declare a national energy emergency and boost U.S. oil production.

His threats to impose 25% tariffs on imports from Canada and Mexico further pressured the markets.

Additionally, WTI stored on tankers rose by +2.5% to 54.23 million barrels, adding bearish sentiment. However, U.S. sanctions on Russian oil exports supported prices, as Russian crude exports fell by -260,000 bpd.

OPEC+ postponed planned production hikes to April 2025, offering price support. Yet, weaker Chinese demand, with crude imports falling -1.9% in 2024, created bearish pressure.

U.S. crude inventories and production also declined, while active oil rigs dropped to near 3-year lows.

The market remains caught between bearish factors like weak demand and bullish support from supply constraints and geopolitical risks.